Self-Assessment gives you greater control and responsibility over your tax affairs. It applies for Income Tax purposes too:
- Self-employed people (i.e. People carrying on their own business, including farming, professions or vocations)
- People receiving income from sources where some or all of the tax cannot be collected under the PAYE system, for example: profits from rents, investment income, foreign income and foreign pensions, maintenance payments to separated persons, fees, profit arising on exercising various Share Options/Share Incentives.
Under Self-Assessment there is a common date for the payment of tax and filing of tax returns, the date is 31 October. This system, known as ‘Pay and File’ allows you to file your return and pay the balance of tax outstanding for the previous year at the same time.
Under this system you must, on or before 31 October each year:
- Make your tax return for the previous tax year, including a self assessment of your tax.
- Pay any balance of tax due for the previous tax year.
- Pay Preliminary Tax for the current tax year.